PHL nixes return to euro bond market B R J S. A @reine_alberto
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HE national government dropped its plan to return to the euro bond market and is now considering yen-denominated securities instead and additional support from multilateral lenders. National Treasurer Sharon P. Almanza told reporters on Tuesday in Malacañan Palace the government will not be issuing euro-denominated securities, or euro bonds, in 2024. “When we issued the $2.5-billion US dollar bonds [in August], it’s more cost-efficient rather [than
the euro bonds],” Almanza said. On a swap basis, Almanza added the euro is more expensive than the dollar. This could impact the government’s debt servicing costs due to higher interest payments and risks of the euro weakening against the peso. With that, Almanza said the government is considering issuing yen-denominated securities, or samurai bonds, instead this year as developments in the market are currently monitored. The issuance of euro bonds is moved for next year’s borrowing plan.
National Treasurer Sharon P. Almanza: “So far, our auctions have
“We’re also watchful of Bank of Japan’s move if they will hike [rates] although the yen has appreciated now, so it’s better,” Almanza noted. The government aims to borrow $5 billion in global bond issuances this year, of which $4.5 billion was raised through the issuance of $2.5-billion triple-tranche US dollar global bonds in August and $2 billion from dual-tranche US dollar bond offering in May. To scout for the remaining $500 million, Almanza said it would depend on the country’s fiscal deficit.
been successful with what we’ve borrowed domestically so it would depend on the deficit.”
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BSP KEEN ON HEFTY CUT IN RRR OF BANKS IN ’24 www.businessmirror.com.ph
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Thursday, September 19, 2024 Vol. 19 No. 338
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HE Bangko Sentral ng Pilipinas (BSP) is keen on making a “substantial” reduction in the Reserve Requirement Ratio (RRR) for banks this year. In a briefing on Wednesday, BSP Governor Eli M. Remolona Jr. told reporters that the reduction in the RRR this year will be followed by further reductions in 2025. Currently, the RRR stands at 9.5 percent, which Remolona said last month, was “a ridiculous level.” The target of the BSP is to reduce this to about 5 percent. “We will reduce reserve requirements substantially this year and then there may be further reductions by next year,” Remolona said. Remolona said that in exchange for the cut in the RRR, Philippine banks are willing to reduce transaction costs on payments. Regardless of this “funny dynamic,” Remolona said it is important to reduce the RRR “in a substantial C A
POWER SPIN At the De La Salle University (DLSU) campus in Biñan, Laguna, Amber Kinetics’ flywheel installation stands at the forefront of energy innovation. These advanced flywheels, capable of generating 32 kWh—sufficient to power 25 homes for an hour—are highlighted in discussions with (from left) Takahiro Kiguchi, President & Representative Director of Kiguchi Technics Inc.; Tomohiro Hada, President of Hadaseikou Co., Ltd.; Hideki Tanaka, President of Tanaka Machinery Inc.; and Xavier Broncano, Program Manager of Amber Kinetics. Developed in Silicon Valley and now manufactured in Santo Tomas, Batangas, these flywheels represent a major leap in energy storage technology. The installation at DLSU serves as an innovation hub, facilitating comprehensive design, engineering, and testing of the technology, while also helping DLSU manage electricity demand and reduce costs. NONIE REYES
3RD PARTY EVALUATION WON’T DA eyes auction of ports for DISRUPT NATIONAL ID SET-UP ships bearing farm goods
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HE National Economic and Development Authority (Neda) said the National ID’s operations will not be disrupted when it submits the project for third-party evaluation. The Neda on Monday said at the House of Representatives plenary budget deliberations that it is willing to submit the National ID to a third-party review to ensure transparency and accountability. Currently, the Bangko Sentral ng Pilipinas (BSP) and AllCard Incorporated (ACI) are locked in a court battle concerning the National ID. (See: https://busi-
nessmirror.com.ph/2024/09/10/ subcontracting-noise-hides-allcardsfailure/)
“Neda and PSA [Philippine Statistics Authority] have yet to discuss details on this proposal, but we will make sure that our operations continue, especially for the services that are already in place for the benefit of the almost 90 million Filipinos registered to the system,” Neda said in a statement sent to BM late on Tuesday. Earlier, PSA Assistant National Statistician Emily R. Pagador told reporters that Filipinos can still register for a National ID and easily obtain the digital National ID through the National ID portal and the e-Gov app launched by the Department of Information S “N ID,” A
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HE Department of Agriculture (DA) plans to auction off the construction of ports that will primarily serve vessels carrying agricultural products. Agriculture Secretary Francisco Tiu Laurel Jr. said the estimated cost for the development of 17 ports in the country is P40.5 billion. “For the [10] big ports, our estimate is P3 billion each. For the smaller ones [...] seven ports at P1.5 billion,” Laurel told reporters on the sidelines of an agricultural forum in Makati City on Tuesday. The agriculture chief added that the government would release a
proposal to the public for the available sites, with prospective areas of the ports set to be built in Mindoro, Negros, Iloilo, Southern Albay, and Batangas, among others. “Hopefully there will be bidders or unsolicited proposals. Kung saan walang interesado then kailangan natin kunan ng pondo for that [For those ones for which there are no interested proponents, we have to get funding],” he said. Laurel also noted that the ports could lower input prices. “For fertilizer cost alone, I think that’s 5 percent less right away, for corn 5 percent less, for feed cost for swine maybe up to 10 percent to 15 percent [less],” he said. C A
PESO EXCHANGE RATES US 55.7640 ■ JAPAN 0.3917 ■ UK 73.4022 ■ HK 7.1542 ■ SINGAPORE 43.0079 ■ AUSTRALIA 37.6742 ■ SAUDI ARABIA 14.8569 ■ EU 61.9817 ■ KOREA 0.0423 ■ CHINA 7.8587 Source: BSP (September 18, 2024)